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Hi <<First Name>> 

I hope you and yours are well, and enjoying the new freedoms of level 2 life. 

Hand in hand with the unprecedented changes of the past few months, have come a series of changes to the mortgage market. Things will continue to change in the coming months, so do reach out and contact me if you’d like to discuss a mortgage. I’m here to help, whatever stage you’re at. 

I’d like to share some insights on three areas that are affecting the mortgage market during this time: 

1. Client activity

First Home Buyers   There’s a genuine lift in interest amongst first home buyers right now. They want to get in quickly while the market is quiet, and before investors get active.

This rise in first home buyer interest is also largely triggered by the LVR (loan-to-ratio) announcement by the Reserve Bank, and the current low-interest rates. A LVR ratio is a measure of how much a bank lends against mortgaged property, compared to the value of that property.  It’s also worth noting the difference between rent and interest payments on a mortgage are getting very close right now, for the same property. You can read more about this in my recent Facebook post.

2. Lenders  Lenders are very cautious with the current market volatility. This includes property prices, income stability and the financial markets. 

The government has been encouraging banks to be brave. It's been publicly disappointed by Government Guaranteed Loans through banks. It has also by-passed banks for the Small Business Cashflow loans, which many will know as 'interest free Government loans'. These are open for applications until 12 June from the IRD.  The LVR changes have primarily been put in place to stop mortgage holidays being treated as hardship and to encourage new lending. On the whole, banks will be conservative, but there will be opportunities for some.

Considering all this (and there is a lot to take in currently!), my pick is that banks will be very conservative in the short term. If you have a stable income then possibly now is a good time to buy. Over the coming months, banks will open up to lower risk lending. This is usually property that’s “safe as houses”.

3. Market activity  While everyone wants the scoop on market activity, I think it is just too early to tell at this stage. You’ll see many reports in the media, and from your local real estate agent. Experience says that some areas will be quite different from others. Do your research; it always pays off!

Please get in contact with me if you have any questions. 

Kind regards,
Tony Ridley Founder & Director, Go Mortgages
tony@gomortages.co.nz   021 754 350

If you're keen to buy, we'd love to chat with you and see how we can help. While banks weren't taking on any new clients until a few weeks ago, and cashbacks were largely gone, we just locked in a deal for a new client at 2.99% for 2 years along with a tidy cashback to take home. Food for thought. 
We're open for business in Level 2. We are flexible as to how we chat, whether that's via Zoom, Whats App, at your local cafe or your home. Alternatively, we can call you at a time that suits, or email you. While we'll have some additional Covid-related questions to cover, we're ready to focus on your mortgage needs. Let's talk. 

 
Contact us
Tony Ridley
Home Loan Adviser & Registered Financial Adviser, Go Mortgages Limited
D  09 441 4020
M  021 754 350
F  09 926 1835
E  tony@gomortgages.co.nz

www.gomortgages.co.nz


PO Box 316 079 Wairau Valley, Auckland 0760 
Copyright © 2020 Go Mortgages Ltd, all rights reserved.

Contact us:
Tony 021 754 350 or (09) 441 4020 
Po Box 316079, Wairau Park, Auckland
www.gomortgages.co.nz

 






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